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The wage determination system in our country is based on bargaining and there is nothing predetermined in it for productivity’s role. An accomplishment of 8 percent growth rate determined in 20 years’ perspective program would be impossible without considering productivity and there exists a direct relationship between increasing productivity and wage payment. In the present research project we have tried to investigate about wage payment system in firms with more than 50 workers in Ardebil province- Iran as a case study and then have proposed a wage model emphasizing at increasing the role of productivity in wage payment. To do so, the data about wages paid in 2014 of 46 firms have been collected by using a questionnaire in Ardebil province. The validity of the questionnaire was studied and approved and also the reliability coefficient was acceptable through the use of Cronbach’s alpha method. The data analyses were carried out by using logistic regression model in STATA 14 software. Regarding the results gained there has not been a positive and meaningful relationship between elements affecting productivity such as education level and also the activity experience and wage payment. A positive and meaningful relationship was observed between wage payment system and constituents of reducing extra work costs, managerial responsibilities, and the presentation of new skills and methods of work and crucial financial posts. Finally a wage model using a linear and functional relationship of the wage with the wage in previous year, annual increase, and skill index was introduced.

Keywords: Wage, Productivity, Payment System, Logit Method

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